Iranian president Ebrahim Raisi spent three days in Beijing signing economic and security agreements with China. China and Iran inked at least 20 new deals over the three days. Details of the agreements come from Chinese and Iranian sources, so everything needs verifying. China and Iran are notorious for using their state-controlled media for domestic propaganda. However, China and Iran issued a joint statement on the summit's final day about their shared security concerns. China and Iran are committed to the territorial integrity of each other, will be conducting joint military drills, training military personnel, and strengthening strategic military communications. The statement looks unusual for an economic meeting.
The Islamic Republic News Agency, an English Iranian government news outlet, reported that China joined Russia, giving its full endorsement for Iran to join the BRICS. More than a dozen countries have applied to join the BRICS, including Saudi Arabia, Egypt, Turkey, Algeria, Argentina, Iran, Indonesia, Kazakhstan, Nicaragua, Nigeria, Senegal, Thailand, and the UAE. The BRICS have three meetings scheduled this year to decide on applications and requirements for acceptance. However, the Iranian article implies that Iran has already been accepted.
The article, speaking about the BRICS, stated, “Al Jazeera said that Raisi and Xi had first met as presidents on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Uzbekistan in September. China had supported Iran’s now-successful bid to become a full member of the organization.” The phrase “now successful” is either a massive misprint or implies that it is a foregone conclusion that Iran’s acceptance is now just a formality of political theater.
The Chinese newspaper didn’t use the same language. The Chinese newspaper said that Tehran asked Beijing's help with their BRICS application. However, the Chinese news reported something the Iranian statement did not mention. Iran will link its energy supply chain to the electricity networks of all Shanghai Cooperation Organization (SCO) members, which include China, India, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan, and Uzbekistan. Also, around 15 other countries are in various stages of SCO application.
As we speculate about the BRICS decisions, it is worth mentioning that Thailand and the UAE were participants with China in the most extensive cross-border CBDC test two months ago with a real-time settlement of $22 million over 164 transactions. Whether the BRICS formally accepts Thailand and UAE, both countries are developing the technologies to trade with China outside the Dollar.
Iran is the 7th largest oil producer, the 17th strongest military, and according to the U.S. State Department, the leading state sponsor of terrorism. There are only four countries on the State Department’s list, North Korea, Syria, Cuba, and Iran. For comparison, North Korea has the 34th strongest military. Syria has the 64th, and Cuba has the 66th.
Over the last few years, several Iranians have protested the Iranian government’s tyrannical rule. Since September, there have been multiple protests over the brutal killing of Mahsa Amini for not having her head scarf properly covering her hair. Iran blocks the internet so people can't communicate and uses machine guns with live rounds to disperse protesters. It is unknown how many Iranians have been murdered by the Iranian government since September, but it is tens of thousands. For many reasons, China formally endorsing Iran to join the BRICS is an alarming development, but as they say, birds of a feather. (The U.S. should send all gender studies majors and inclusion experts to Iran to solve one of the world’s worst woman's rights issues. The government forces women to wear a head scarf. If it is not perfectly tied, the woman is either imprisoned for 25 years, executed, or, like Mahsa Amini, brutally murdered on the spot by the morality police.)
Can Precious Metals Help?
Precious metals will not undo the global political quagmire or offer any guarantees of a better tomorrow. Precious metals will not make the world sane or stop the BRICS from warring against the Dollar. If individuals owning precious metals could usher in universal peace, the world would have been tranquil for the last 5,000 years. People don’t own precious metals to bring peace to the world. Instead, people own precious metals to have peace of mind when there is no peace in the world or markets.
Precious metals have always held value and have never gone to zero. On the contrary, 100% of all fiat currencies throughout history have gone to zero. Fiat currencies go to zero for different reasons, but war is one of the primary reasons. Whether it is a war with bullets or complicated financial instruments, the BRICS have declared war on the Dollar and actively trying to expand its membership. If the Dollar were to survive, it would be the first time a country successfully printed its way out of debt in human history. The threat is real, and the time is short.
Do you know what tomorrow holds? No? That is precisely why precious metals are an excellent idea.
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